The investing game is rarely plain sailing. While no doubt investors would like the choices that make up their portfolio to always go up, the reality is more complicated. There are periods when even shares of the world’s most successful companies have been on a downward trajectory for one reason or another. Amazon is a good case in point.
While it’s no fun watching a stock you own drift to the bottom, any savvy investor knows that if the company’s fundamentals are sound to begin with, the pullback is often a gift in disguise. This is where the chance for strong returns really comes into play. “Buy the Dip” is not a cliché without reason.
Wall Street’s analysts have been noticing that plenty of stocks these days are oversold, and they are not shying away from pointing it out. Using the TipRanks’ platform, we’ve pulled up the details on two such equities. Both Strong Buys with substantial upside potential, according to the analyst community. Let’s dive in.
Twilio, Inc. (TWLO)
We’ll start with Twilio, a software company in the cloud sector, offering a full-service business communications platform designed to facilitate multiple telecom channels, including telephone and VoIP, instant messaging, and video chats, to name the big ones, in a single web-based browser outlet. The company’s service lets users keep all of their communications systems and outlets together, making them easier and more efficient to use and protect.
That Twilio shares were clearly preadapted to thrive during the corona pandemic is clear from the stock’s performance history. TWLO rose sharply, starting in May of 2020, and peaked in February of last year. After that, however, the stock turned volatile, and is now down 55% year-to-date. It’s a dramatic reversal of fortune for the company.
At the same time, Twilio has been posting steadily rising revenues since the end of 2019. In Q4 of last year, the last quarter reported, Twilio’s top line hit $842 million, up 54% year-over-year. For all of 2021, the company showed a 61% y/y revenue increase, to $2.84 billion. But a bit of…